Gold Just Crossed $7,000 AUD – Here’s What’s Going On

If you haven’t checked the gold price lately, now might be the time. As of mid-February 2026, gold is trading around AUD $7,027 per ounce after hitting an all-time high above AUD $7,400 in late January.

That’s a gain of more than 70% year-on-year. In physical gold.

So, what’s driving it?

Central Banks Are Loading Up

One of the more underappreciated drivers is the pace of central bank buying. Around 800 tonnes are expected to be added to official reserves in 2026 alone, roughly a quarter of annual global mine supply. China’s central bank has now been accumulating for 15 consecutive months.

When monetary authorities themselves are increasing exposure to gold, it speaks to broader concerns around currency stability and reserve diversification.

The Tariff and Inflation Backdrop

Trade tensions remain unresolved. Tariff settings continue to shift, inflation remains persistent and US fiscal deficits are expanding.

Individually, none of these factors are new. Collectively, they are reinforcing demand for hard assets. In periods where confidence in policy, currencies and growth moderates, gold has historically played a stabilising role in portfolios.

Rate Cuts Back on the Table

Markets are now pricing in three US Federal Reserve rate cuts this year, up from two just a week ago. Lower rates typically weigh on the US dollar and reduce the opportunity cost of holding non-yielding assets like gold.

We haven’t seen those cuts yet, but expectations alone are influencing positioning.

Where Are the Key Levels?

For those following the technical picture, gold in USD remains above its 50-day moving average at around US$4,947 and comfortably above the 200-day at around US$4,809.

In Australian dollar terms, price action over the past week has ranged between roughly AUD $6,890 and $7,175.

On the upside, a sustained move above US$5,100 would bring the January high near US$5,600, approximately AUD $7,900 or higher, back into focus. J.P. Morgan has recently lifted its year-end target to US$6,300, which at current exchange rates would imply gold comfortably above AUD $8,900.

On the downside, US$5,000, around AUD $7,080, remains an important psychological level. While price holds above this zone, the broader uptrend remains intact.

The Bottom Line

In the space of 12 months, gold has shifted from a steady performer to a headline asset. The underlying drivers, central bank accumulation, geopolitical tension, inflation concerns and the prospect of lower rates, are structural rather than short term.

Whether you’ve held for years or are only now revisiting the market, the move is difficult to ignore.

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions